new bankruptcy law
Filing bankruptcy is no longer possible as before under the new bankruptcy law which applies to cases filed on or after October 17, 2005. According to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 credit counseling is now a prerequisite for consumer debtors wishing to file for Bankruptcy.
Filing bankruptcy is no longer possible as before under the new bankruptcy law which applies to cases filed on or after October 17, 2005. According to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 credit counseling is now a prerequisite for consumer debtors wishing to file for Bankruptcy. In the six months before filing bankruptcy, the debtor must undertake Bankruptcy credit counseling thru an approved nonprofit budget and credit counseling agency. In addition, a post-filing debtor education credit counseling session is necessary to end the bankruptcy procedure and debts discharged. Bankruptcy Only has a network of personal Bankruptcy lawyers nationwide to help you with your specific needs.
There are many ways a debtor filing bankruptcy can undertake bankruptcy credit counseling. Some of these ways are phone credit counseling, internet credit counseling or group or individual credit counseling thru court approved bankruptcy credit counseling agencies. Non-profit budget and credit counseling agencies must meet strict requirements by law.
Counseling sessions with approved association must carry out assessment of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session before filing bankruptcy is of approx 60 to 90 minutes duration taken in person or on the phone. The counseling is free of charge for those consumers who cannot afford to pay. You can ask for a fee waiver before the session begins or you may be charged a fee for the counseling, which is about $50, depending on your location, the services you get, and other reasons.
When a business becomes unsuccessful and fails the owner may file business bankruptcy. This can be handled through a personal bankruptcy filing. Many states offer exemptions for small business assets so they can continue to operate during and after personal bankruptcy or chapter 13 bankruptcy as the case may be. Bankruptcy credit counseling is seen as an attempt to delay a debtor from filing bankruptcy until other alternatives are ruled out.
Consulting a bankruptcy attorney is very important for a debtor to understand Chapter 7 Bankruptcy Information. Court approved credit counseling can charge counseling fees only within set limits for the entire counseling. This limit is set for $50.00 per debtor per counseling prior to filing bankruptcy. Such debtors must get a completion certificate of the respective counseling agency and include it along with the debtor's bankruptcy petition.
Individuals thinking of personal bankruptcy can now be diverted to file according to Chapter 13 Bankruptcy Rules by their attorneys if feasible. This is beneficial as the debtor gets to keep his assets and the creditors are assured of their debts being repaid.
You may also get free counseling on medical bankruptcy to get legal protection availed against debts arising out of medical treatment, hospitalization expenditure, medication costs.
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